HSBC mulls ‘bad bank’ in strategic shake-up

UK lender is also considering a merger of its investment and commercial banking teams, sources say

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By

Paul Clarke and

Ryan Weeks

February 13, 2020 11:46 am GMT

HSBC’s top executives are considering a radical overhaul of the bank to address ongoing underperformance in several of its largest units.

The plans include a potential merger of two of its biggest divisions, as well as the creation of a “bad bank” to house billions of dollars of unwanted assets and businesses, according to people familiar with the management’s proposals.